A Quiet Month for Investments, But Fintech Stays Busy

TL;DR

• Industry news and highlights
• Friday Feature on Fintech
• January Programs Team Update
• The National Financial Inclusion Strategy (NFIS) 2024-28
• UBL & AdalFi Partnership
• Bank Alfalah Acquires Minority Stake in Jingle Pay

Hello Readers,

January saw zero startup investments, but the fintech space stayed active. From State Bank of Pakistan (SBP) ’s NFIS 2024-28 launch to Bank Alfalah Limited ’s Jingle Pay deal, key players are laying the groundwork for long-term growth. Meanwhile, new funding programs like Accelerate Prosperity - An AKDN Initiative ’s Venture+ and Sigma Capital ’s $100M Web3 fund hint at better days ahead. Here’s a quick look at what’s been happening!

??Friday Feature: The Fintech Landscape in Pakistan: Progress and Potential?

In our last two Friday Features, we explored Pakistan's financial sector to uncover the opportunities and challenges facing fintechs. With 241.5M people and 142M broadband users, SBP is aiming to increase financial inclusion to 75% by 2028. It is supporting this shift through EMI regulations and Raast, an instant payment system.

Key Segments & Startups

?? Digital Payments – JazzCash & easypaisa digital bank lead, each with 15M+ active users

?? Lending & Credit – CreditBook offers micro-loans for SMEs & individuals

?? Remittances – SadaPay is digitizing cross-border money transfers

?? Wealth Management – Abhi (YC S21) , NayaPay , and Mahana Wealth support payroll, SMEs, and savings

Challenges & Future Outlook

?? Hurdles – Regulatory complexities, cybersecurity risks, and funding gaps

?? Opportunities – AI-driven finance, increased VC interest, and policy-driven digital expansion

With global fintech investment at $43B in 2024, Pakistan’s ecosystem is poised for growth. A digitally inclusive economy will empower both individuals and businesses, positioning fintechs as key drivers of economic transformation.

From the desk of i2i ??

??From Idea to Impact: Closing the Funding Gap in Pakistan’s Startup Ecosystem?

From Sprint to Shark Tank

From i2iScale Sprint to Shark Tank Pakistan , ezGeyser is transforming home heating with its smart digital thermostat—offering automation, cost savings, and sustainability amid Pakistan’s gas crisis.

?? Investment Secured: PKR 10M

?? Deal: 20% Equity + 10% Royalty until PKR 10M is recovered

At i2i, we’re proud to have supported their journey with:

? Tailored coaching & pitch clinics

? Legal & strategic advisory

January 2024 - This month in news!?

Industry news and highlights ??

DeepSeek shakes up the Global AI Industry

Chinese AI startup DeepSeek AI made waves with its R1 model, which rivals OpenAI ’s O1 model while using fewer resources and less compute power. This breakthrough sent 英伟达 ’s stock down by 16.9%, wiping nearly $600 billion off its market cap. Analysts speculate that R1’s success signals that high-end chips may not be as essential for cutting-edge AI thereby posing a challenge to 英伟达 ’s business.

The news comes just as U.S. policies on AI chips shift. President Biden’s restrictions on exporting AI chips to China were overturned by Trump’s new executive order, which launches the Stargate Project, a $500 billion AI infrastructure initiative. DeepSeek’s rise highlights that AI dominance isn’t just about chips but about innovation and talent as well.Sigma Capital

Launches $100M Web3 Fund for MENAP

UAE based Sigma Capital unveiled a $100M fund to accelerate blockchain innovation, targeting early-stage startups in DeFi I Decentralized Finance , asset tokenization, gaming, and the metaverse. “We’re building an open, inclusive digital economy,” said CEO Vineet Budki . The fund combines capital, strategic mentorship, and DeFi strategies to empower startups amid surging global blockchain adoption.

Accelerate Prosperity - An AKDN Initiative (AP) Launches Debt Financing Program for SMEs

AP's Venture+ program offers flexible financing up to PKR 40M for small businesses in Pakistan with annual revenues under PKR 150M. Targeting scalable, impact-driven businesses, the program provides debt financing, subsidized interest rates, and advisory support to help companies grow. Eligible businesses from Punjab, Sindh, Gilgit-Baltistan, and Khyber Pakhtunkhwa can apply for reduced interest rates and flexible repayment terms.

Trending Reads & Must-Watch this Month

?? SBP Introduces The National Financial Inclusion Strategy (NFIS) 2024-28

The National Financial Inclusion Strategy (NFIS) 2024-28 aims to build on past progress to increase financial inclusion in Pakistan, using digital innovation, regulatory reforms, and priority sector financing. The strategy targets expanding access to financial services, promoting secure digital finance, improving SME and agriculture financing, and enhancing consumer awareness. The goal is to raise financial inclusion to 75% and reduce the gender gap to 25% by 2028.

Key Takeaways

? Financial Inclusion Progress: Bank account ownership grew from 16% in 2015 to 64% in 2023, with a focus on digital banking and mobile accounts.

? Gender Inclusion: Women's bank account ownership increased from 13M (2018) to 31M (2023), reducing the gender gap from 47% to 34%. The goal is to further bring it down to 25% by 2028.

? Digital Financial Services (DFS): Emphasis on Raast, Asaan Digital Account, and mobile banking to drive adoption, with a target of >80% digital payments by 2028.

? SME & Agri Financing: Priority sector lending expansion, targeting 3M new microfinance borrowers, 1M new agri borrowers, and 200K new SME borrowers.

? Islamic & Green Finance: Increased focus on Islamic banking, climate-smart agriculture financing, and sustainable finance policies to promote green lending.

? Consumer Awareness & Protection: Strengthening financial literacy programs, regulatory frameworks, and consumer protection policies to ensure responsible financial inclusion.

???UBL & AdalFi Launch Digital CashPlus: Instant Loans, Zero Paperwork

AdalFi has partnered with UBL - United Bank Limited to launch Digital CashPlus, offering instant personal loans to UBL customers. Powered by AdalFi’s AI-driven credit scoring and seamless digital experience, users can access credit instantly with zero paperwork—all within the UBL app. With CashPlus gaining momentum, this partnership marks a major step in redefining digital lending and making credit more accessible in Pakistan.

P.S. Got thoughts on our newsletter? Stories to share? Hit us up! We love hearing from our community. Drop us a line! ??